The move ends Polkadot’s open-ended issuance model, which generated roughly 120 million new tokens yearly.
Currently, around 1.6 billion tokens are in circulation, meaning more than three-quarters, or 76%, of the eventual supply has already been minted.
Polkadot said it aims to stabilize its long-term economic design by introducing scarcity and winding down inflation as a funding mechanism. The change highlights a broader effort to reduce dependence on perpetual issuance and push the ecosystem toward alternative revenue streams.
The new framework introduces a stepped-down inflation schedule beginning March 14, 2026. Under the revised model, token issuance will taper over a two-year adjustment period.
Polkadot estimates that about 1.91 billion DOT will be in circulation by 2040, which is far below the 3.4 billion projected under the old system. The final cap is expected to be reached around the year 2160.
To manage this process, the proposal outlines three schedules for reducing inflationary pressure. One option immediately cuts emissions by more than half before easing off, while another applies sharper early reductions followed by a gradual decline through the next century.
Yet these moves have failed to halt the token’s slide.
At press time, DOT trades at roughly $4.20, according to CryptoSlate data, marking a fresh 24-hour decline of nearly 5%.
The drop compounds a broader downturn, with the asset losing about 34% of its value since the start of the year.
